Quick China Facts: Is China Really An AI Power?
Data Source: Lens.org ; Created by Decypher Team
According to data from IP data provider Lens.org, the number of published patents related to AI in China has decreased since 2021. However, this may not tell the whole story. A 2021 article from the World Intellectual Property Organization (WIPO) reveals that China has filed the most patents in the field of AI in the past decade, accounting for 74.7% of the global total and ranking first in the world. This suggests that China has been reducing the availability of its AI-related data to the public over the past two years. Of the total patent applications filed in China, limited patent applications make up 41%, granted patents make up 3%, and patent applications make up 56%.
Decypher Micro Essay
As I write this Li Keqiang has been officially cremated, honoured by the party but in a way that assures everyone in China that the ‘eternal’ rivalry of Xi and Li has been settled in the favour of the former. The Chinese censors have taken down any mention of Li, leaving behind online the blandest ones, and yet in Anhui province where the former Premier was born the flowers continue to be laid, the ones laying the flowers are two groups that are nominally at odds angry dissenters, and nominally apolitical people. They have in common between them, fond memories of Li Keqaing and his love for reminding the Chinese about accountability. In 2020 Premier Li surprised many by reminding them that around 600 million Chinese subsist on just 1,000 yuan ($137) a month. He admitted that covid had hit poor families hard. Li had called for checks on arbitrary government power.
As the era of Li that never was, comes to an end much sooner than expected, I am going to quote one of his aphorisms, “the Yellow River and Yangtze River will not flow backward.” The implication was that the “reform and opening-up” policy, introduced by the late Deng Xiaoping, would not disappear. Li took pride in being a legitimate inheritor of the reform and opening-up policy, which was firmly maintained through the presidency of Hu Jintao, whom Li thought of as an older brother. Though the current rulers of China would want his legacy boxed, and filed in the cavernous archives of history, the people of China will remember Li fondly, for as The Economist put it ‘As a reform-era technocrat, Li served a one-party system that sought legitimacy through governing performance. Many Chinese miss that time.’
News From Asia This Week
Monday
Israel pounds Gaza’s north as it steps up ground assault
Palestinians in northern Gaza reported fierce air and artillery strikes early on Monday as Israeli troops backed by tanks pressed into the enclave with a ground assault that drew increased international calls for the protection of civilians.Israeli air strikes hit areas near Gaza City’s Shifa and Al-Quds hospitals, and Palestinian militants clashed with Israeli forces in a border area east of the city of Khan Younis, in the enclave’s south, Palestinian media reported.
Mob storms Russian airport looking for Israelis
A mob looking for Israelis and Jews overran an airport in Russia’s Caucasus republic of Dagestan on Sunday, after rumours spread that a flight was arriving from Israel. The violence in the mostly Muslim region, which erupted amid the war between Israel and Hamas in Gaza, prompted Israel to call on Russia to protect its citizens. The governor of Dagestan promised that those responsible for the incident would be punished. Dozens of protesters, many of them chanting “Allahu akbar” (God is greatest) broke through doors and barriers, with some running onto the runway, according to videos posted on social media and Russia’s RT and Izvestia media.
ICC prosecutor warns Israel over preventing aid getting to Gaza
International Criminal Court prosecutor Karim Khan said Sunday preventing access to humanitarian could be a crime, after visiting Egypt’s Rafah crossing with Gaza, the main entry point for international aid. “Impeding relief supplies as provided by the Geneva Conventions may constitute a crime within the court jurisdiction,” Khan told reporters in Cairo.
Thousands rally in Pakistan against Israel’s bombing in Gaza, chanting anti-American slogans
Thousands of supporters of Pakistan’s main politico-religious party rallied in Islamabad against Israel’s bombing of Palestinians in Gaza, accusing the U.S. of “backing the aggressor.” Jamiat Ulema Islam held a massive rally in Quetta, expressing solidarity with Gazans. Despite authorities taking stern action to modify the program, Jamaat-e-Islami supporters marched in Islamabad to oppose Israel and the U.S. and support Palestinians.
Tuesday
Lebanon’s Hezbollah works to curb hefty losses in Israel clashes, sources say
With dozens of Hezbollah fighters killed in three weeks of border clashes with Israel, the Lebanese group is working to stem its losses as it prepares for the possibility of a drawn-out conflict, three sources familiar with its thinking said. The Iran-backed group has lost 47 fighters to Israeli strikes at Lebanon’s frontier since its Palestinian ally Hamas and Israel went to war on Oct. 7 – about a fifth of the number killed in a full-scale war between Hezbollah and Israel in 2006.
Israel will not agree to ceasefire as it would be a ‘surrender to Hamas and terrorism’, PM Netanyahu says
Benjamin Netanyahu vows that Israel will not agree to a ceasefire with Hamas, as it would be seen as surrendering to terrorism.
China factory activity unexpectedly shrinks in Oct, dents recovery momentum
China’s manufacturing activity unexpectedly contracted in October, an official factory survey showed on Tuesday, underlining the challenge facing policymakers trying to engineer a durable economic recovery. Recent indicators pointed to encouraging signs of stabilising in the world’s second-largest economy, supported by a flurry of policy support measures, although a protracted property crisis and soft global demand remain major headwinds.
Taiwan puts chips on the table with US$375 million semiconductor expansion fund
The government plan, due to launch next year with an initial US$375 million budget, is intended to explore ways to aid chip designers, manufacturers and suppliers expand offshore and at home. Developers and designers hope the government uses its weight to expand Taiwan’s chip market offshore without sacrificing Taiwan’s unique status, built over more than four decades, as a world semiconductor production centre.
Wednesday
Israeli military jets strike Gaza camp, says Hamas commander killed
Israeli airstrikes hit a densely populated refugee camp in the Gaza Strip, killing at least 50 Palestinians and a Hamas commander, and medics struggled to treat the casualties, even setting up operating rooms in hospital corridors. Israeli tanks have been active in Gaza for at least four days following weeks of air bombardments in retaliation for an attack by Palestinian Hamas militants on mostly Israeli civilians on Oct. 7 and the taking of more than 200 hostages.
Yemen’s Houthis enter Mideast fray, hardening spillover fears
Yemen’s Houthis have waded into the Israel-Hamas war raging more than 1,000 miles from their seat of power in Sanaa, declaring on Tuesday they had fired drones and missiles at Israel in attacks that highlight the regional risks of the conflict. Part of an “Axis of Resistance” backed by Iran, the Houthis have rallied behind the Palestinians since Hamas attacked Israel on Oct. 7, opening a new front for a movement that has waged war for eight years with a Saudi-led coalition in the Gulf.
Hezbollah entry into war would mean Taiwan trade-off, U.S. analysts say
Concerns are mounting in Asia that the wars in Ukraine and Israel are depleting U.S. stockpiles of weapons and ammunition, leaving it in a weaker position to defend Taiwan against a potential Chinese offensive.
Asian stocks stutter ahead of Fed, frail yen in focus
Asian stocks were lower on Wednesday ahead of a keenly-awaited policy decision from the Federal Reserve later in the day, while the yen was stuck near one-year lows against the dollar, keeping markets on edge for possible intervention by Tokyo. China shares eased 0.15 per cent, while the Hong Kong’s Hang Seng Index fell 0.75 per cent. China’s factory activity unexpectedly contracted in October, a private survey showed on Wednesday, adding to a downbeat official manufacturing survey the previous day and raising questions over the country’s fragile economic recovery at the start of the fourth quarter.
Thursday
China cements party control over finance, clamping down on risk but making investors sweat
Beijing’s tightened control over its financial system – affirmed at a twice-a-decade policymaking conference on Tuesday – is a reflection of rising concerns from top leaders on the country’s economic distress and a symbol of widening divergence from more developed financial markets, analysts said.
Hamas says Israel’s strikes on refugee camp kill more than 195 people
More foreigners prepared to leave the besieged Gaza Strip on Thursday as its Hamas-run government said at least 195 Palestinians died in Israel’s attacks on the Jabalia refugee camp, strikes that U.N. human rights officials said could be war crimes. At least 320 foreign citizens on an initial list of 500, as well as dozens of severely injured Gazans, crossed into Egypt on Wednesday under a deal among Israel, Egypt and Hamas.
Fed keeps rates unchanged, Powell hedges on possible end of tightening campaign, and Japan Announces a US$ 113 Billion Package to tackle inflation
The Federal Reserve held interest rates steady on Wednesday as policymakers struggled to determine whether financial conditions may be tight enough already to control inflation, or whether an economy that continues to outperform expectations may need still more restraint. While in Japan Prime Minister Fumio Kishida said on Thursday the government will spend over 17 trillion yen ($113 billion) in a package of measures to cushion the economic blow from rising inflation, which will include tax cuts.
Opposition mounts in Arab countries that normalized relations with Israel
Rab nations where monarchies typically quash dissent and that have normalised or are considering improving relations with Israel are coming under growing public pressure to cut those ties because of Israel’s war with Hamas. Tens of thousands of people have taken to the streets of Rabat and other Moroccan cities in support of the Palestinians. In Bahrain — a country that almost never allows protest — police stood by as hundreds of people marched last month, waving flags and gathering in front of the Israeli Embassy in Manama.
Friday
China’s Confucius Institutes are disappearing from US campuses
China-funded Confucius Institutes in the US have closed, a new report found, highlighting how soured ties between Beijing and Washington have led US universities to abandon what was once seen as a cheap way to offer Chinese classes. All but five of the institutes, which were created in 2004 to promote Chinese language, are now closed, the Government Accountability Office said. That is compared with 2019, when the GAO found 96 Confucius Institutes operating in 44 states. At the time, only six states had no colleges or universities with the centres. The decision tracks with a sharp spike in tension between the US and China dating to the Trump administration that’s seen a rise in export-controls, sanctions, tariffs and repeated diplomatic incidents.
Pentagon unveils AI strategy to boost US ‘decision advantage’ in China competition
The Pentagon’s latest data and artificial intelligence strategy announced on Thursday will advance “better and faster” battlefield decision-making amid Washington’s strategic competition with Beijing. Deputy defence secretary Kathleen Hicks said the main reason to integrate AI into US military operations “responsibly and at speed” is “because it improves our decision advantage”. “From the standpoint of deterring and defending against aggression, AI-enabled systems can help accelerate the speed of commanders’ decisions, and improve the quality and accuracy of those decisions – which can be decisive in deterring a fight, and in winning a fight,” Ms. Hicks said.
North Korea media urges stronger nuclear force after U.S. missile test
North Korea will increase its military deterrent to ensure its security against a U.S. nuclear arsenal aimed at it, its state media reported on Friday, as it criticised the United States for a recent intercontinental ballistic missile (ICBM) test. The U.S. Air Force launched a nuclear-capable Minuteman III missile from a base in California on Wednesday but the missile was blown up after an anomaly was detected. The test was attended by South Korean defence officials in their first such visit since 2016.
Apple revenue dips for 4th straight quarter as Asian sales flag
Apple on Thursday reported its fourth consecutive quarter of declining revenue as a gloomy macroeconomic outlook weakens global consumer demand, with Asia leading the sales decline. Total revenue dipped 0.7% on the year to $89.5 billion for the three months ended Sept. 30. The technology giant’s home turf of the Americas was the only region registering growth, at 0.8% on the year to $40.1 billion. Asia, however, saw sales drop across the region for the three-month period. Japan suffered the sharpest revenue decline of all regions in the quarter, dropping 3.4% to $5.5 billion.
Malaysia holds key interest rate at 3%, despite falling ringgit
Even though the currency is causing inflationary pressure, the Central Bank took the opposite route from other South, and South-Eastern countries.
North Korea prepares to launch spy satellite with Russian aid
The South Korean National Intelligence Service (NIS) is reporting to the people of South Korea. that Pyongyang might be exchanging technical know-how for military supplies. A lawmaker who attended the briefing with the NIS informed Nikkei. This is the third attempt this year by the North Koreans after the failures of May, and August to launch military satellites. After the last failure it was to happen in October, which has been postponed due to possible problems with Chollima -1, the rocket they would use.
Singapore’s Asset Manager Keppel Looks To India Amongst Weak China Demand
The Singaporean asset manager Keppel will be looking to drive deeper into markets other than China. In China Keppel divested a 35% equity stake in Chengdu Taixin Real Estate Development. Keppel does not see a fast recovery in China, but projects in India appeared to be growth market and suitable for opportunities.
Japan to invite Central Asian Foreign Ministers to G7 Meeting Next Week
Japan is stepping up its approach to woo the Central Asian countries in a bid to step up diplomacy.
Philippines’ Marcos relinquishes agriculture post as prices soar
Philippine President Ferdinand Marcos Jr. on Friday gave up his post as agriculture chief, handing the position to a fishing tycoon who is now charged with containing soaring food prices. The appointment of Francisco Tiu Laurel Jr., who runs the Frabelle Group of Companies, which has food processing and fishing operations, comes at a crucial point for the agriculture industry as it looks to shake off a post-pandemic rut, Nikkei has reported.
Philippine exchange greenlights short-selling for first time
Ramon Royandoyan writes in Nikkei Asia that,The Philippines is set to launch short-selling on one of Asia’s oldest exchanges, but some are casting a wary eye over the effort to boost trading volumes and enhance the country’s weak corporate governance. Investors can bet against Manila-listed shares, starting Monday, in a first for the nearly century-old exchange, after the proposal plodded through years of red tape amid worries that it would spark frenzied price swings. Rastine Mercado, head of research at China Bank Securities, said the new trading regime is the “culmination of an endeavor that has been years in the making.
China and Southeast Asia nations vow to conclude a nonaggression pact faster as sea crises escalate
Chinese and Southeast Asian diplomats have agreed to finalise a nonaggression pact for the South China Sea in three years, according to regional diplomats. This pact is part of ongoing negotiations to establish a ‘code of conduct’ to prevent armed conflict in the region. The South China Sea territorial dispute between China, ASEAN member states, Taiwan, and the US continues to be a sensitive issue and a potential Asian flashpoint. The recent incident where a Chinese fighter jet came close to colliding with a US bomber highlights the ongoing tensions between the two powers. The recent dangerous and provocative manoeuvres by China’s coast guard and navy ships in the South China Sea have raised concerns. The Philippines has protested against these incidents and the United States has warned that it will defend the Philippines if they come under attack.
Decypher Opinion
Risk, and Uncertainty in China: From Taiping Rebellion To Falling Economy
In late 19th-century China, during the Taiping Rebellion, an insurgency that lasted for 14 years led to a new concept: commercial insurance. For this was one of the most important episodes that Chinese people now call “Century of Humiliation”. For the Qing dynasty in the fight against the Taiping Heavenly Kingdom were joined by the French, and the British.
This interaction between Western and Chinese perspectives on risk influences China’s subsequent approach to dealing with crises and uncertainties.
Historical Influence and Change:
China’s response to crises is heavily influenced by its unique historical, political, and cultural context. As discussed in Political Scientist Richard P. Suttmeier’s paper “Risk in China: Comparative and historical perspectives on its social construction and management,” it becomes evident that after 1949, with the consolidation of power under the Communist Party led by Mao Zedong, there was a significant shift towards centralization in the government’s approach to managing crises.
This centralized approach was exemplified during the Great Leap Forward (1958-1962), which despite later being recognized as a disastrous policy resulting in immense economic and humanitarian suffering, showcased China’s ability to mobilize vast resources and human labour towards ambitious goals. Unfortunately, this centralization also contributed to exacerbating issues such as famine through restructuring agricultural practices without considering potential consequences. However, this approach creates a tricky dynamic between collective societal interests, individual liberties, and transparency. The high value placed on maintaining collective interests and social stability has at times led to compromises on individual liberties and transparency. This fosters an environment of heavy reliance on government control.
Through the subsequent decades leading into the 21st century, China’s crisis response evolved continually. For instance, during the 2003 SARS outbreak, China initially faced criticism for a lack of transparency but later adopted aggressive measures, such as strict quarantines and travel restrictions, to contain the virus. By the time of the COVID-19 pandemic in 2020, China was able to respond more swiftly and effectively, leveraging its centralized governance model and advanced technology for contact tracing, stringent lockdowns, and rapid healthcare infrastructure expansion.
How Chinese Decision Makers Look At Problems?
Prof. Suttmeier’s paper discusses the issue of overconfidence in China’s approach, specifically regarding their reliance on technical judgments in policy-making. It suggests that the enhanced stature of the technical community, coupled with a strong belief in scientific knowledge, may bias Chinese thinking towards unrealistic confidence and cynical manipulations of “objective” risk analyses. This might already be evident in policy plans for major projects like the Three Gorges Dam, and the Belt and Road Initiative (BRI), potentially disregarding important social, economic, and environmental factors.
His analysis underscores China’s risk management is hindered by certain factors, including a centralized approach, ambiguous property rights, limited insurance options, and the influence of the technical community. These predispositions reflect a cognitive bias deeply embedded in China’s culture and history.
In response to recent economic crisis situation like this one shows that China has established the Central Finance Commission to strengthen financial oversight. Amid pressure from Western countries in the technology sector, China is increasingly focusing on self-reliance and initiatives like developing independent chips. This shift towards centralized control is evident through the establishment of institutions such as the National Data Bureau and the restructuring of the Central Finance Commission. As mentioned in a recent Financial Times article, China is currently undergoing a transition away from growth driven by property and local government, which has proven to be a challenging process. The cautious spending habits of consumers can be attributed to their lack of confidence in future pension and healthcare coverage. Additionally, low investor confidence in the private sector stems not only from economic weaknesses but also from concerns about unfair competition with state-owned enterprises and tighter regulations.
To gain a deeper understanding of China’s strategies, it is valuable to analyze them through theories such as Path Dependence and Cultural-Cognition. The concept of Path Dependence highlights how decisions made in the past can constrain future options, shedding light on how China’s historical path towards centralization continues to influence its current actions. Additionally, the cultural cognition approach emphasizes that shared cultural values shape perceptions of risk. In the case of China, societal values like harmony, state control, and self-reliance are reflected in their efforts to manage risks arising from significant political and economic challenges.
Lastly, the cushion hypothesis adds another layer of depth, suggesting collectivist societies like China may have a higher risk tolerance level due to their social safety nets. This concept may explain why China can embrace bold strategic manoeuvres during crises that would be classified as high-risk in more individualist societies.
In sum, As China continues to evolve its approach, the balance between traditional beliefs, modern solutions, internal and external influences, and adapting Western practices to a Chinese context remains a delicate challenge. But, as history has shown, China’s resilience and adaptability to enormous change will play major roles in shaping its future strategies and societal responses to crises.
The shrinking of the population, and ageing population means that time is running out.
Beyond The Great Wall
Exploring News About China in Depth
Decypher Abstracts
1). Chinese officials must feel they are being ‘followed by shadows’, President Xi Jinping says
In a previously undisclosed speech published in Qiushi, the Communist Party’s top theoretical journal, Chinese President Xi Jinping urged the country’s auditors to make officials feel as if they are constantly “followed by shadows.” He emphasised the significance of removing blind spots in their work and ensuring that the party’s policies are effectively implemented. Xi outlined five key policy areas in which auditors should concentrate their efforts: finance, monetary policy, industry, technology, and social affairs. He urged them to focus on promoting high-quality development, exercising power responsibly, and ensuring stable employment and prices. According to Xi, auditing would also be used to reward or punish officials. The National Audit Office (NAO), which has been in operation since 1983, recently celebrated its 40th anniversary. The Communist Party has used auditing to combat corruption, and the NAO exposed over 1 billion yuan (US$138 million) in financial misconduct by government departments, including unauthorised financial investments and excessive pay hikes. Xi’s speech emphasises his emphasis on tightening party control over policies and their implementation, emphasising constant scrutiny and accountability for officials in charge of public funds, state-owned assets, and resources.
2.) China’s New “Xi Jinping Constitution”: The Road to Totalitarianism
The 2018 amendment to the Chinese constitution solidifies one-party rule by inserting the declaration that “the defining feature of socialism with Chinese characteristics is the leadership of the Communist Party of China.” This change is a throwback to previous versions of the 1982 constitution, which only included references to the party and its leadership role in the preamble. The amendment also eliminated term limits for the presidency and vice-presidency, which were imposed by Deng Xiaoping’s circle to prevent a repeat of the tragic excesses of the Cultural Revolution. The amendment allows Xi Jinping to remain China’s supreme leader as long as he desires, heralding an end to the era of collective leadership and setting the stage for a return to individual autocracy.
Wang Qishan’s appointment as vice-president takes on particular significance in this context, as he has long acted as “Xi’s right-hand man” and stepped down from his position in the Politburo Standing Committee last October. The amendment also includes substantial changes to Chapter 3, the Structure of the State, in four new articles (123–127) on establishing a central State Supervisory Commission to oversee anticorruption efforts supported by local supervisory commissions at various levels.
This establishment places the State Supervisory Commission above other entities such as the State Council, the Supreme People’s Court, and the Supreme People’s Procuratorate. The NPC approved the Supervision Law on March 20, which went into effect immediately. The amendment also includes “Xi Jinping thought” as one of the state’s guiding ideologies. The amendment adds “The Scientific Outlook on Development and Xi Jinping Thought on Socialism with Chinese Characteristics” to the list of “Marxism-Leninism, Mao Zedong Thought, Deng Xiaoping Theory, and the Important Thought of Three Represents.”
In conclusion, the 2018 amendment to the Chinese constitution solidifies one-party rule, eliminates term limits for the presidency and vice-presidency, and establishes a separate power apparatus parallel to the administrative and judicial branches. This new structure gives the new apparatus extraordinary power over the fate of China’s public servants, subject to few legal constraints.
3.) China’s ACCEL Chip: A Leap in AI Technology Despite Sanctions
Despite U.S. efforts to restrict their access to advanced technology, it was anticipated that China may experiment with new materials and chip packaging to develop more powerful semiconductors. China is pursuing a comprehensive strategy to boost its chip industry, and hampering its progress may ultimately hurt the global economy.
Chinese scientists have developed a new chip called the All-Analogue Chip Combining Electronics and Light (ACCEL), which uses light-based, photonic computing and is significantly faster and more energy-efficient than current high-performance AI chips. In laboratory tests, the ACCEL chip achieved a computing speed of 4.6 peta-floating point operations per second (PFLOPS), 3,000 times faster than Nvidia’s A100 AI chip, while consuming 4 million times less energy. It is to be noted that the A100 is under US-China sanctions. The advanced AI chips are made using lithography machines not available in China.
This innovation, created by China’s Semiconductor Manufacturing International Corporation, leverages a 20-year-old transistor fabrication process, signalling a potential breakthrough in AI chip technology. Although the ACCEL chip is currently limited in its applications, it offers promising energy efficiency, potentially helping to overcome challenges related to heat dissipation in integrated circuits.
The new chip is not intended to replace those currently in use but may soon be used in wearable devices, electric cars, and smart factories. The research team responsible for ACCEL received funding from China’s science ministry and is exploring its commercial prospects. This development highlights China’s efforts to catch up with the United States in the field of artificial intelligence, despite the restrictions.
Panic over Chinese consultant in French space defence sector
Starburst Aerospace, the incubator for technical innovation in the space sector, recently called in the former boss of the French branch of Chinese geospatial intelligence (GEOINT) group Head. Blacklisted in the US, Head has sold spy satellites to Russia’s Wagner group.
CIIE 2023: US will send strongest-ever delegation to China International Import Expo amid improving ties
The United States will be sending the strongest trade delegation to the China International Import Expo (CIIE). Jason Hafemeister, acting deputy undersecretary for trade and foreign agricultural affairs and trade counsel to the agriculture secretary at the US Department of Agriculture (USDA), will be among the federal officials attending the six-day event, which begins in Shanghai on Sunday. Joining him will be Wade Sheppard, of the USDA, who is a senior advisor for North Asia. This will be the first time that such senior officials of the US will be attending this event.
The US Heartland China Association, a bipartisan advocacy group, will also send a group of mayors from 20 inland US states to explore trade opportunities, the sources added.
The delegation follows a string of recent visits by US federal and state politicians, and also raises the possibility of an in-person meeting between President Xi Jinping and his US counterpart Joe Biden on the sidelines of the Asia-Pacific Economic Cooperation meeting in San Francisco in mid-November.
The USDA has confirmed it would lead a group of 17 exhibitors for the Shanghai expo, where a US agricultural product pavilion will be unveiled.
Could this be a thaw between the two countries? Most possibly it could mark a long road to the process but China containment policy would not be going anytime soon.
(Nikkei/ Decypher Analysis)
The video below:
Chinese ambassador calls on Fazl
Chinese Ambassador to Pakistan Jiang Zaidong along with his delegation met with Jamiat Ulema-e-Islam-Fazl (JUIF) chief Maulana Fazlur Rehman on 1st November in Pakistan. China-Pakistan Economic Corridor (CPEC) was the primary topic of meeting. JUIF is a party based in Khyber Pakhtunwa and Northern Baluchistan provinces of Pakistan. CPEC is facing hurdles in these regions. During the meeting Ambassador Jiang expressed his desire for Chinese technology to be used in Pakistan’s agriculture sector and Fazal expressed his resolve to form industrial and economic zones in Khyber Pakhtunkhwa and Baluchistan.
China-Pakistan Joint Research Centre on Earth Sciences inaugurated
A scientific and technological innovation platform between China and Pakistan, namely, China-Pakistan Joint Research Centre on Earth Sciences (CPJRC), was inaugurated at Quaid-i-Azam University. Researchers from the two countries will jointly study and assess the impact of geological disasters and climate change on China-Pakistan Economic Corridor (CPEC) and local sustainable development.
Speaking at the event, Cui Peng, Director-General, CPJRC, stated “CPEC areas are vulnerable to frequent natural hazards. Its environment and ecosystem are fragile, and socio-economic development is affected by multiple constraints, affecting local resilience and sustainable development.”
Bangladesh won’t take sides on China versus EU, says PM
China has been competing for influence in Bangladesh with the European Union (EU), with Prime Minister Sheikh Hasina’s recent visit (24th Oct) to Brussels indicating that Bangladesh wants to maintain all diplomatic and economic ties. During her visit, she emphasised Bangladesh’s neutral stance on the situation. She signed a €400 million investment agreement with the EU, with the majority of the funds going towards renewable energy projects. The EU’s investment in Bangladesh is part of the EU’s Global Gateway initiative, which is aimed at rivalling China’s Belt and Road Initiative. Bangladesh, on the other hand, faces difficulties in balancing its relations with both the EU and China. The EU has placed a high priority on assessing Bangladesh’s adherence to political freedoms and human rights standards, particularly in light of the upcoming general elections, whereas China has explicitly stated that it believes in the Bangladesh Government’s ability to hold a free and fair election free of outside interference.
Bangladesh enters new era with China-built first underwater tunnel
Bangladesh inaugurated its first underwater tunnel last week (28th Oct), constructed by China Communications Construction Company, marking a significant achievement in Bangladesh-China cooperation and the Belt and Road Initiative (BRI). The tunnel will help improve connectivity between Bangladesh and its neighbours. Foreign Ministry Spokesperson Wang Wenbin expressed China’s congratulations and continued commitment to promoting high-quality BRI cooperation.
Amid China’s economic deceleration, various demographics within the nation are grappling with economic hardships and the shifting dynamics of their society. This slowdown is, to a considerable extent, attributed to specific policy measures implemented by the Chinese government.
The ramifications of this economic downturn are widespread. China’s 296 million-strong migrant workforce is contending with sluggish wage growth, recent university graduates are wrestling with the scarcity of job opportunities, and the urban middle class is bearing the brunt of a property market downturn instigated by government policies. Even the wealthier echelons of society are feeling the repercussions of Beijing’s stringent measures targeting diverse sectors, such as the internet, finance, and healthcare.
President Xi Jinping, who embarked on an unprecedented third term in March, asserts that China is making progress towards “national rejuvenation” and “high-quality development” through the implementation of the “common prosperity” policy, designed to alleviate inequality. Nevertheless, beneath this triumphal rhetoric, concerns are rife among observers that the government’s policymaking may be adrift.
Traditionally, the Chinese government granted its populace economic opportunities in exchange for limitations on political freedom, thereby maintaining a clear social contract. However, recent policy adjustments have clouded this arrangement. Vague assurances of security and the promise of “a better life” have superseded the former emphasis on growth and opportunity, leaving the populace uncertain about their future.
China’s economic woes stretch beyond these concerns about the social contract. The nation’s economic model, hinging heavily on debt-driven investments in infrastructure and real estate, has exhibited its shortcomings. With property no longer serving as the economy’s engine, the government is required to identify substitute sources of growth.
Economists suggest that the implementation of an array of reforms, such as fiscal, financial, retirement age, pension, and state-owned enterprise reforms, could potentially ameliorate the economic situation. Furthermore, addressing the issue of “hukou,” a system that deprives rural and migrant workers of full urban benefits, could potentially contribute to an economic boost.
Xi’s emphasis on security and common prosperity, while pivotal for maintaining control and stability, has precipitated significant ramifications on investment sentiment and commercial activity. The government’s actions, in conjunction with external factors, have resulted in a 70% drop in China’s tech stocks listed in the United States.
While an immediate outbreak of social unrest is not anticipated, there is an escalating sense of frustration and a prevailing feeling of drift among the Chinese populace. This erosion of optimism and the persistent uncertainty about the future may pose a formidable challenge for the government to contend with in the forthcoming years.
